Google's current generation of Nexus tablets feature a Tegra 3 CPU from NVIDIA, but the status quo could change soon. According to Digitimes, Google's upcoming 2nd-generation Nexus 7 tablet won't feature any NVIDIA hardware, and will instead opt for a solution from Qualcomm.

According to the publication's supply chain sources, the upcoming Nexus 7 will launch next May with a Qualcomm SoC, while costing NVIDIA almost 8 million units in sales as a result. Pricing doesn't appear to have played a role in the decision, with the main factor reportedly being the lack of integrated LTE on the Tegra 4. And while the Tegra 4i did manage to remedy that problem with an onboard modem, its launch doesn't appear to have matched up with the Nexus 7 timeline.

Based on the numbers, NVIDIA managed to outfit over 10 million tablets with Tegra 3 units last year, but 6 million of those were the ASUS-produced Nexus 7. As such, the loss of Google as a customer could prove a devastating blow for NVIDIA, especially with sales already down this year.